ICTSI consolidated revenues up 44% in IQ

May 20, 1998 PSE CIRCULAR FOR BROKERS NO. 1087-98 PRESS RELEASE ICTSI consolidated revenues up 44% in IQ International Container Terminal Services, Inc. posted unaudited consolidated revenues of PhP872 million in the first quarter, up 44 per cent from the 1997 first quarter revenue of PhP607 million. Total revenues include contributions from the Manila International Container Terminal (MICT), ICTSI International Holdings Corp. (IIHC) and other local subsidiaries. IIHC is a wholly owned subsidiary which holds the beneficial interest of ICTSI's shareholdings in its overseas operations. Revenues from the MICT operations grew by only three per cent, from PhP607 million in 1997 to PhP626 million in 1998. The moderate increase in revenues from the MICT is a result of rate increases in vessel charges and port dues at the MICT. Vessel charges increased by 20 per cent in January and container handling charges by 10 per cent in March. But despite the tariff increases, revenues only grew slightly because of a decline in container volume handled as a result of the repercussions of the lingering economic slowdown. MICT volumes dropped 13 per cent, from 204,529 TEUs to 177,560 TEUs. cdlex Revenues amounting to PhP246 million were contributed by other local subsidiaries and overseas operations, the bulk of which came from International Ports Services Co. Ltd. in Saudi Arabia. Net income grew moderately by eight per during the period in review, from PhP44 million to PhP47 million. The increase is primarily attributed to the income contributed by IIHC. Equity in net earnings from Buenos Aires Container Terminal Services, S. A. in Argentina and Internacional de Contendores Asociados de Veracruz, S. A. de C. V. in Mexico increased 46.7 per cent, from PhP37 million in 1997 to PhP54 million in 1998. Net income was pulled down by consolidated administrative and operating expenses which grew by 103 per cent, from PhP274 million to PhP555 million. Administrative and operating expenses in the first quarter of 1998 include those of IPS, EIT and other local subsidiaries such as ICX Corp. These amounted to PhP194 million. In 1997, expenses of these subsidiaries were not consolidated. MICT expenses increased 32 per cent primarily because of depreciation and amortization of unrealized foreign exchange losses amounting to PhP86.9 million (net). Despite a moderate increase in MICT revenues, fees paid to the Philippine Ports Authority (PPA) increased by 26 per cent, from PhP173 million to PhP219 million because of the depreciation of the Philippine peso. Fixed fees payable to the PPA are dollar-denominated.